Mozambique firm cuts power to Zimbabwe over $80 million debt

• 12 years ago (2012-03-16)
• David Flin

Africa 323

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Mozambique’s Hydro Caharo Bassa (HCB) has cut off electricity supplies to Zimbabwe over an outstanding $80 million debt. The move has forced Zimbabwe to intensify load shedding.

The Zimbabwe Electricity Supply Authority (ZESA) has been struggling to pay for electricity imports to supplement depressed local generation. ZESA owes HCB $80, which remains unpaid, despite an agreement requiring ZESA to pay only 50 percent of the debt. However, ZESA, which is owed $450 million in unpaid bills, has been unable to pay even the reduced debt.

HCB supplied ZESA with 100 MW of the 400 MW imported by Zimbabwe. Zimbabwe has an internal capacity of 1320 MW, to meet a demand of 2100 MW. ZESA said that it has intensified load shedding, and that the situation was made worse by a lack of capacity to import.

Justin Mupamhanga, Zimbabwe’s Permanent Secretary for Energy and Power Development, refused to comment on the issue, saying that the matter was “too sensitive”.